The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 7.8 hours Standard variable overhead rate $14.20 per hour The following data pertain to operations for the last month: 2,825 hours $40,835 Actual hours Actual total variable manufacturing overhead cost Actual output 250 units What is the variable overhead efficiency variance for the month? Multiple Choice $13,145 U $12,425 U $720 U $27,690 F

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output
Standard variable overhead rate
7.8 hours
$14.20 per hour
The following data pertain to operations for the last month:
2,825 hours
$40,835
Actual hours
Actual total variable manufacturing overhead cost
Actual output
250 units
What is the variable overhead efficiency variance for the month?
Multiple Choice
$13,145 U
O $12,425 U
$720 U
$27,690 F
Transcribed Image Text:The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output Standard variable overhead rate 7.8 hours $14.20 per hour The following data pertain to operations for the last month: 2,825 hours $40,835 Actual hours Actual total variable manufacturing overhead cost Actual output 250 units What is the variable overhead efficiency variance for the month? Multiple Choice $13,145 U O $12,425 U $720 U $27,690 F
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